By Benadeta Mwaura - Reporter
Kenya, 30 April 2026 - Kenya’s economy is showing signs of slowing momentum, with new data from the Kenya National Bureau of Statistics (KNBS) indicating that growth eased to 4.6 per cent, weighed down by a widening trade deficit and external pressures.
The latest figures point to a fragile recovery, as the country continues to grapple with high import costs, currency pressures, and global economic uncertainty.
While key sectors such as agriculture and services remained supportive, the overall pace of expansion has moderated compared to previous periods, reflecting tightening economic conditions.
At the centre of the slowdown is Kenya’s growing trade imbalance. KNBS data shows that the value of imports continues to outpace exports by a significant margin, pushing the trade deficit wider and increasing pressure on the country’s foreign exchange reserves.
This imbalance has been exacerbated by rising global prices for essential imports, particularly fuel, machinery, and industrial inputs.
The impact is being felt across the economy. A weaker shilling, driven in part by sustained demand for foreign currency to finance imports, has made goods more expensive and contributed to inflationary pressures.
Businesses reliant on imported raw materials are facing higher production costs, which are increasingly being passed on to consumers.
Despite the slowdown, some sectors have shown resilience. Agriculture, a key pillar of the economy, has benefited from improved weather conditions in certain regions, while the services sector, particularly financial services and ICT, continues to expand.
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However, these gains have not been strong enough to offset the drag from external trade pressures.
Economists warn that the widening deficit poses longer-term risks if not addressed. A persistent gap between imports and exports can weaken economic stability, increase borrowing needs, and limit the country’s ability to build foreign reserves.
The data comes at a time when policymakers are under pressure to strike a balance between supporting growth and managing fiscal and external vulnerabilities. Efforts to boost exports, reduce reliance on imports, and stabilise the currency are expected to take centre stage in the coming months.
For households and businesses, the implications are already clear. Slower growth often translates into fewer opportunities, tighter incomes, and increased cost pressures, adding to the challenges of an already high cost of living environment.
As Kenya navigates this period, the latest KNBS figures serve as a reminder that while the economy continues to grow, the pace, and the quality, of that growth is becoming an increasingly critical concern.